Synopsys Tops Q2 Estimates, Issues Weak Q3 Earnings Forecast

reported stronger-than-expected results for the fiscal second quarter, but the company issued a weak earnings forecast for the current quarter. The Mountain View, California-based company reported a quarterly profit of $55.6 million, or $0.35 per share, versus a year-ago profit of $63.3 million, or $0.40 per share. Excluding items, the company's earnings rose to $0.68 per share from $0.65 per share. Its revenue gained 7.6 percent to $557.2 million. However, analysts were expecting a profit of $0.63 per share on revenue of $546.46 million. The average estimate among 9 Estimize users was for earnings of $0.65 per share and revenue of $548.33 million. "Our fiscal second quarter results were very strong, and solidify our outlook for the full year," said Aart de Geus, chairman and co-CEO of Synopsys. "We see clear momentum with our new implementation and verification products in the early stages of a multi-year customer upgrade cycle. Our entry into the software quality and security space has opened up an opportunity to drive incremental growth in both familiar and new market segments and build on Synopsys' strengths." For the current quarter, Synopsys projects adjusted earnings of $0.58 to $0.60 per share, on revenue of $550 million to $560 million. Analysts had expected earnings of $0.66 per share on revenue of $557.39 million. For the full year, Synopsys now expects adjusted earnings of $2.76 to $2.81 per share, on revenue of $2.21 billion to $2.235 billion. Analysts had projected earnings of $2.78 per share on revenue of $2.22 billion. Synopsys shares fell 1.38 percent to $48.56 in the after-hours trading session.